Mitsubishi Rayon Co., Ltd. is making steady progress with regard to the priority issues outlined in its 6th Medium-Term Management Plan (released in May 2008), namely the expansion of the core acrylic business, the fostering of next-generation core businesses, and the restructuring of unprofitable overseas Group affiliates.
Our Glore valcana business expanded operations in the areas of clothing and home furnishings. However, the profitability of the business rapidly deteriorated in response to the decline in the popularity of artificial suede and changes in fashions. Mitsubishi Rayon responded with investments to renovate plant and equipment, and then transferred the operations to Mitsubishi Rayon Textile, making every effort to reestablish profitability. However, given the circumstances, and after an analysis of the current operating environment, we have concluded that it would be difficult to regain profitability. We have consequently made the decision to withdraw from this business. |
